Trump's corporate tax cut for the windfall

Discussion in 'Fedex Freight' started by Thom-8-Toes, Jan 11, 2018.

  1. mattbob

    mattbob Active Member

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    Thanks SwampRatt, you should be in mgmt. Oh wait, sorry you can't-------you have common sense which is not allowed in mgmt
     
  2. The Point

    The Point You get it or not!

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    It was asked in our meeting if the pension dump was for Freight or FedEx Corp. The answer was there is only one plan at FedEx. So let's examine that. I say we do have 2 distinct plans.

    Exhibit A from the FY17 Annual report: "We made contributions of $2.0 billion in 2017 and $660 million in 2016 and 2015 to our U.S. Pension Plans." Half of the 2017 amount was from a Bond sale.

    Exhibit B from the mailer (see picture 1) dated September 2017 assets under $800 million so the money from Exhibit A did not go to us, therefore another pension fund exists for FedEx Corp. (see picture 2 below)

    Exhibit C "For 2018, we anticipate making contributions totaling $1.0 billion (approximately $700 million of which are expected to be required) to our U.S. Pension Plans." So they already had plans to input $1 billion into the pension fund. Well it looks like the tax break dump will free up money from some other cost?

    Exhibit D see picture 3 for assets and liabilities. We have assets of $26.3 billion. Again nowhere near the $800 million from the statement.

    [​IMG]
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  3. Hoot Owl

    Hoot Owl Well-Known Member

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    Well you have our Portable pension fund, the pilots pension fund and the parity pension fund to name a few.
     
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  4. SwampRatt

    SwampRatt Well-Known Member

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    Great investigative work! Thank You.

    Typing on phone, we'll be brief. I'm gonna go out on a limb and say there are indeed more than 1. More likely, several.

    We know of Freight Inc. plan. Express has their plan, with (I seem to recall) up to 8% contributions vs ours up to 6%.

    Then, we can be pretty certain, pilots have their own plan. Perhaps Freight Corporation, has yet another? FedEx Corporate?

    Bottom line, if it were all one pension fund, it might be called a Multi-Employer Pension Fund. IMAGINE THAT.
     
  5. Richard Cranium

    Richard Cranium Well-Known Member

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    “We’ll be brief” Swampy, do you have extra voices to contend with also?
     
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  6. mattbob

    mattbob Active Member

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    yahoo finance has an article about fedex borrowing 1,5 billion to fully fund pension program,
     
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  7. Redracer3136

    Redracer3136 BANNED

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    Just curious, the 47% to go towards upgrading the Mem & Indy facilities was said to be spread out over a seven year plan...does that mean the 2/3 of the $200M for wages will also be spread out over seven years??
     
  8. The Point

    The Point You get it or not!

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    4 out of the 5 voices in my head agree we'll is perfectly fine. I will continue to push for where the money is going but I suspect it will only go to the main pension
     
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  9. SwampRatt

    SwampRatt Well-Known Member

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    :biglaugh:

    NO, $200M is cost for early raise (this year) across all Opp-Cos. 2/3 for hourly ($133.3M) and 1/3 salaried incentive bonuses ($66.7M). We must hope that's a grey number, under estimated.:idunno:

    The $3.2M Express Hub upgrades, spread over 7 yrs., averages $0.457M per year.

    The Pension funding equates to a marginal increase year over year, from 2017, again per published reports, and still comes from borrowing.

    https://www.bloomberg.com/news/arti...s-for-pension-contribution-after-tax-overhaul

    "FedEx Corp. is borrowing $1.5 billion to fund a contribution to its pension plan that it announced last week after the passage of U.S. tax law changes."

    Again, look back at 2017:

    ttp://www.pionline.com/article/201...m-spurs-hefty-corporate-pension-contributions

    "FedEx Corp., Memphis, Tenn., offered $1.2 billion in new bonds at the beginning of 2017, $1 billion of which was set to be used to fund pension contributions."

    All of this shows there is still substantial funding left on the table, a portion of which might be EXPECTED to be shared via annual increases for hourly AND salaried team members...

    We stay tuned...
     
  10. Crazy Trucker

    Crazy Trucker Hurting clown feelings daily

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    Thank you Mr Trump my paycheck was 50 dollars more for this payday. Pretty good that's like getting a dollar raise.
     
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  11. SwampRatt

    SwampRatt Well-Known Member

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    Obvious error. Sorry...

    Correction:

    $1.5B over 7 years = $0.214B per year. ($214M)
     
  12. silent trucker

    silent trucker Well-Known Member

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    you do understand that by pouring $1.5 billion in the plan now, they save at least 3 times that down the line as the baby boomers retire in mass?

    It's not about you, it's about the shareholders.

    ST (Shareholding Trucker)
     
  13. Richard Cranium

    Richard Cranium Well-Known Member

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    Didn’t a few people back during the great onion debate claim that the pension fund was fully funded?
    Could that possibly have been not the truth, not the whole truth, and everything but the truth?
     
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  14. mattbob

    mattbob Active Member

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    the truth always does come out in due time............just sayin
     
  15. Redracer3136

    Redracer3136 BANNED

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    Well, that’s up for debate...fully funded by law (govt standards) yes, fully funded 100%, no.

    If I’m not mistaken the Govt only requires funding to be at 80% to be considered “fully funded”, which ours was at the time
     
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  16. The Point

    The Point You get it or not!

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    So wait a minute. Did we just announce $1.5 billion from the tax break plus another $1.5 billion from a bond sale 1 business day after the Friday press release? So is that a $3 billion pension dump now or did the original $1.5 just get sideswiped into another mystery funding bucket? As a side note I was told again that we only have one pension. This of course pushes me harder and I present the final nail of evidence in the picture below which I will now print and ask for explanation. I suggest everyone push for clarification on what funding is going where as I do not think we will be told otherwise.

    [​IMG]
     
  17. SwampRatt

    SwampRatt Well-Known Member

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    Begs the question, beyond the obvious P/R spin:

    Ignorance or deception?

    Sadly, our people at Freight are going to have to try to explain what FedEx Corporation is doing. I'm not sure, but it sounds like they are not willing OR able to properly do it. Waiting for our (local) official presentation... Stay tuned
     
    Last edited: Feb 1, 2018
  18. silent trucker

    silent trucker Well-Known Member

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    By floating the bonds now, they're able to lock in a lower interest rate, since the Federal Reserve has already hinted at 3 more rate increases this year.

    Smart move,

    ST
     
  19. SwampRatt

    SwampRatt Well-Known Member

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    I'm pretty sure the $1.5B announced, as tax windfall spending, is the same $1.5B financed. Again, if so, it should leave some funding on the table...
     
  20. SwampRatt

    SwampRatt Well-Known Member

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